Brent crude oil traded around $113 a barrel today due to reduced concerns over exports from Iraq.
Reuters reported that Brent was down ten cents at $113.11 a barrel, while US crude was down ten cents at $105.74 a barrel.
The news agency said prices have declined nearly $3 from the nine-month high of $115.71 reached on 19 June, as output from Iraq’s southern oilfields, which produce the majority of the country’s 3.3 million barrels per day, remained unaffected by violence in the north and west.
Risk analysts predict that there are chances of reduced supply disruptions if violence between Sunni militants and Iraq Government forces continues north of Baghdad.
Investors are watching the conflict between Sunni insurgents and the Iraq Government forces as both sides fight to take control of the country’s biggest refinery, Baiji, which currently produces 300,000bpd.
Meanwhile, the oil production in Libya has increased to 300,000bpd after the El Feel oilfield in the south-west increased production.
NOC said the eastern Hariga oil port in Libya has also reopened and is preparing to receive a tanker after an agreement was signed with a group of security guards, who were protesting at the site.